Final 2023 State Stats Show Online Poker Revenue Down
The final numbers are in for the states in America that offer licensed and regulated online poker. The revenue reports show the good and the bad, all of which turns out to be a fairly standard story for this still-burgeoning industry in the US.
Overall, the good is that the four states that offer online poker as a part of a larger igaming scheme showed an increase in overall igaming revenue. This has become the trend for New Jersey, Michigan, Delaware, and Pennsylvania, each of which set a new all-time igaming revenue record for 2023 as was the case in 2022 as well.
Of those four states, only three of them – New Jersey, Delaware, and Pennsylvania – separate online poker revenue from the rest of the online casino games. Michigan does not separate online poker, so there is no indication of its performance as an independent peer-to-peer game. And that’s not even the bad news. The bad news is that two of the three states that reported online poker revenue, only one of them – New Jersey – saw an increase from the previous year.
Where is Nevada, you might ask? Nevada offers online poker only. Its revenue report would likely provide interesting statistics…but only one site operates in the state, and it is not obligated to report its revenue publicly. So, it does not. The public has no idea what WSOP.com earns in online poker revenue.
There are a few other states – West Virginia, Connecticut, and Rhode Island – that have authorized state-regulated igaming, including online poker. However, their respective small populations have not incentivized poker operators to launch there…yet.
The following are the final igaming revenue totals and charts, and the states’ industry updates for 2023.
Connecticut: Full-Year 2023
It was back in mid-2021 that Connecticut legalized online gaming. The process took quite some time, as it included amending Native American gaming compacts and maneuvering around some legal threats from a casino giant. But in the end, the bill became law in 2021.
The first online casinos launched later that year. Online poker sites never took shape. The primary reason was that the player pool in Connecticut would be too small to sustain itself, and no operators wanted to establish a server and invest in a site that couldn’t be profitable on its own. The only way to bring online poker to Connecticut in the new regulated system would be for the state’s governor to sign the Multi-State Internet Gaming Agreement (MSIGA).
There has been no information about the state’s desire to sign that agreement.
Delaware: Full-Year 2023
It’s been a transformative year for Delaware’s igaming business.
When the Delaware Lottery first launched its online casino and poker sites, it did so in partnership with 888casino and 888poker. The platform worked through all three participating Delaware racetracks – Dover Downs, Harrington Raceway, and Delaware Park. That initial 10-year contract with 888 Holdings expired in 2023, prompting the Delaware Lottery to solicit bids for a new contract.
In August, Delaware selected its new partner as Rush Street Interactive. The company would provide online gaming for the state for a period of five years, with one-year renewals then available for another five years.
Rush Street was already operating in several states, provinces, and countries, making the online casino and sports betting launches relatively straightforward. However, the poker sites have yet to relaunch under the new regime. That is because Rush Street’s poker platform is relatively new. It acquired Run It Once Poker, the creation of Phil Galfond, in early 2022 to format for the US market. The rollout of that new online poker product in Delaware will be its debut in America.
The majority of the transfer already happened, and the new Delaware online casino and mobile sports betting products launched on January 3, 2024. Online poker, however, shut down at the same time in preparation for the introduction of its new product. But with no timeline for a relaunch, it is unclear how long the online poker revenue will be nonexistent.
With some luck and a fresh product, Delaware has a chance to improve its igaming revenue.
The final 2023 numbers showed annual growth of 3.25%, but that rate is much lower than the two previous years of 29.04% in 2022 and 25.03% in 2021.
And when the accountants pulled online poker out of the igaming arena, that particular vertical actually showed an annual decline of 4.39%.
That online poker breakdown by month showed a roller coaster of a year for the game. Growth in months like April, May, June, and July varied dramatically from 4% to 14% to 5% to 12%. But the dips in March (28%), August (27%), and October (23%) were enough to bring revenue down on the year.
The monthly story of igaming as a whole was an odd one, with more months of decreases than those with increases. It did manage to eke out an annual upswing, but it was mild compared to years past.
Michigan: Full-Year 2023
It is not possible to know exactly what part of Michigan’s igaming revenue belongs to online poker, as the Michigan Gaming Control Board does not separate it out in its reports. We can only assume that online poker is growing in the state for one reason: liquidity.
The first day of 2023 marked the first day of PokerStars USA connecting its Michigan site to PokerStars NJ. With New Jersey and Michigan players in the same pool to create more cash games and tournaments, traffic increases likely led to revenue increases. That Multi-State Internet Gaming Agreement (MSIGA) among several states welcomed Michigan in mid-2022, and PokerStars was the first to take advantage of it.
Even so, it’s notable that one year after PokerStars combined MI and NJ, BetMGM is still saying that it will do the same. And WSOP has yet to make so much as a statement about merging its Michigan and New Jersey sites.
The only information provided to show Michigan’s igaming growth is the overall revenue numbers. While it is broken down in reports by casino partners, there is no specific online poker data. Therefore, the general story of igaming in the state is one of growth.
Nevada: Full-Year 2023
Since the inception of state-regulated online poker in Nevada, the regulatory agencies of the state have not required operators to reveal their revenue. Only if there are three or more operators servicing the state does the state have to publish revenue statistics. There is only one, which is WSOP.com through Caesars Entertainment, and that company does not reveal any information of its own accord.
New Jersey: Full-Year 2023
The igaming market in New Jersey has been active for more than a decade, and its overall revenue has been on a fairly consistent upswing. Growth has slowed somewhat in the past two years, with 2023 producing only a 15.7% increase in total igaming revenue. That number was down from the 21.6% growth the previous year and down significantly from the 40.9% market growth in 2021.
Online poker had a positive year, the first one since the pandemic. The market has struggled to maintain its player base, much less grow it, with the primary exception of 2020, the year of the pandemic. The online poker sector grew more than 85% that year. But the fall after that was more pronounced than anticipated – 23% in 2021 and another 9% in 2022.
The small but important rebound of online poker in 2023 is notable. The vertical grew 5.6% from the previous year, likely due to the combination of its PokerStars player pool with its sister platform in Michigan. If and when BetMGM and WSOP do the same, the NJ market is likely to continue its upswing.
Overall, the market continues to perform well, despite the rate of growth slowing since the pandemic.
And the online poker market remains unstable but leaning on the hope that liquidity will grow that sector this year.
Pennsylvania: Full-Year 2023
The greater igaming industry in Pennsylvania performed well. In contrast to other states, it stayed on track with recent years, growing 27.66% in 2023. That was bigger growth than the 22.6% of the previous year.
As for online poker, the trajectory has been more volatile. After an incredible first year in 2020, there was a 10% dip in 2021 but a slight rebound in 2022 of 4%. However, the 2023 numbers showed online poker down 9%.
There is a fairly obvious problem with Pennsylvania online poker. The state has yet to sign the multi-state agreement to allow its sites to join with their counterparts in other states. MSIGA would allow the sites to offer their players larger prize pools, bigger guarantees, and more game variety. It is unclear as to why the state’s regulator and/or governor have not pursued that partnership yet.
The chart of growth of the PA igaming industry in just the past few years is an ideal depiction of igaming’s potential for any given state.
The online poker chart, on the other hand, shows what can happen if a state launches online poker but doesn’t give it room to grow.
Rhode Island: Full-Year 2023
There is no full-year data for Rhode Island yet, as the RI legislature just passed the bill in the summer of 2023. In fact, there is no data at all, as the first online casinos aren’t scheduled to launch until March or April 2024.
The new market in Rhode Island will be a limited one, probably most closely resembling that of Delaware. Bally’s Corporation owns the states’ two land-based casinos, so the operator will likely launch online casino skins for each one but connect them on a single platform.
As for online poker, it would use the same template as the casinos, with Bally’s operating one online poker site separated into two skins but using the same player pool. It remains to be seen, though, if it will launch online poker or wait until the state signs MSIGA to make the player pools viable and open to growth. Rhode Island’s population is quite small, and an online poker site will struggle to gain traction if not linked to other states.
The path for RI online poker will likely be determined in 2024.
West Virginia: Full-Year 2023
Many people don’t know that West Virginia legalized online poker in 2019. And the first online casinos launched in 2020. Online poker, however, has been on hold for all these years, as the small population has kept online poker operators hesitant to set up poker sites in WV.
The big news in 2023 was that West Virginia did sign on to MSIGA. It was late in the year, but it was a positive step toward online poker operators considering adding WV to their agenda. While no company has applied for a specific license to do so yet, it may just be a matter of time. This year will tell the tale.
